| Two weeks ago, we attended the 18th Dried Nuts & Fruit Food Exhibition & Supply Conference in Hefei. It was great to see the continued interest of the Chinese industry in macadamias, both for kernel and NIS. Over the past year, there has been particularly strong demand for small-sized NIS for local processing due to attractive pricing. This surge in demand has pushed prices for small-sized NIS closer to those of the standard 22mm+ product. Nevertheless, demand for this specific product still exceeds supply. Naturally, there are concerns in the market about the impact of the ongoing trade war. Will it further reduce the volume of U.S. products entering China, prompting buyers to seek alternatives? At the same time, it is clear that a significant portion of U.S. products are routed through Vietnam for further processing, allowing them to bypass tariffs. One thing remains certain: inshell macadamias continue to be competitively priced compared to other nut products. Kernel demand in the EU has been consistently strong, with a focus on the snack market. Prices have improved significantly compared to the beginning of last season and remain stable. The expectation is that prices for snacking styles will hold firm. Meanwhile, ingredient styles—more dependent on U.S. demand—are currently trading at a considerable discount. Interest in this segment is growing, but uncertainty in the U.S. market is making buyers hesitant to commit to long-term contracts. Next week, we will be attending the INC Conference in Mallorca, and we are keen to meet buyers to gain new insights there. |
